Video Edit Magic must convert QuickTime files into AVI format before editing them. For this conversion, you should select "Best Quality". On your computer, this will use MJPEG video compression and no audio compression. The quality of these files is very high, but the files will also be very large.

When you are finished editing and will be creating your final video using Make Movie, select a different compression system. For good compression with high video quality, many of our customers have had good success with Xvid video compression. You can download the free Xvid installer here. MP3 (MPEG 1 Layer 3) compression is a good choice for audio. A movie made using these compression methods will be of reasonable size, and good quality.

If I may add to this topic: I downloaded and began using Xvid a short time ago and it's the best thing I've ever done for my videos! What I produce now is a higher quality video at 640x480 with no distortion at full screen (1024x768) and a much smaller footprint than before. Overall megabyte size has been reduced by over half since using it, and plays back through YouTube are phenomenal.